Ethics

Theory Research Paper: XBRL - Extensible Business Reporting Language

Submitted by Group A:

Choukri Alaoui

Dan Acosta

Jennifer Carey

Tonia Andrews

Submitted to:

Professor Heidi Bruno

ACCT 441

Abstract

This research paper defines eXtensible Business Reporting Language. The paper also gives examples of the requirements and how it works. Even though there were many trial versions, XBRL has proven to have many benefits and uses and as it continues to be developed. The XBRL has been implemented nationally and internationally. The SEC has mandated that all public entities adopt XBRL for reporting by June 2011.

Introduction: eXtensible Business Reporting Language

XBRL stands for eXtensible Business Reporting Language, also known as interactive data, and is one of a family of “XML” languages which is becoming a standard means of communicating information between businesses and on the internet (An Introduction to XBRL, n.d.). This sub-set of XML languages provides flexibility in business reporting that is revolutionizing the accessibility of information. Karen Kernan (2008) wrote “XBRL doesn’t change the accounting standards or methods used for financial and business reporting, but it puts reported information into an instantly reusable computer-readable format” (Kernan, 2008). This format utilizes data tags which are attached to reporting items based upon pre-defined definitions.

“XBRL is being developed by an International non-profit consortium of approximately 450 major companies, organizations and government agencies (An Introduction to XBRL, n.d.). The SEC has contracted XBRL US to create and implement the interactive language utilized in what was previously the EDGAR system which has been replaced with the IDEA system. The goal of the SEC, as stated in its Final Rule (effective April 13, 2009 – October 31, 2014) is to, as new technologies evolve, promote efficient and transparent capital markets” (n.a., Securities and Exchange...